Northern Virginia is increasingly becoming the economic engine of the Washington area, according to a new report.
The Virginia region’s share of a major measure of the Washington-area economy has nearly doubled since 1970, according to George Mason University’s Center for Regional Analysis.
“Clearly, Northern Virginia has become the center of the Washington area’s … economy,” said Stephen Fuller, the center’s director.
Between 1970 and 2009, Northern Virginia’s share of the Washington area’s gross regional product surpassed that of the District and the Maryland suburbs, the report said. Gross regional product is the value of goods and services produced locally.
Economic drivers
Share of gross regional product*
“>
Region
2009
1970
Northern Virginia
46%
27.0%
Suburban Maryland
32%
34.5%
District of Columbia
22%
37.5%
*The Washington metropolitan area includes a portion of West Virginia, which was not factored into the calculations.
Source: George Mason University Center for Regional Analysis
The three areas had about an equal foothold in 1983, when federal contracting began to accelerate. Federal contracting totaled $6 billion in 1983 compared with $87 billion in 2009, which contributed to Northern Virginia’s increased share in the local economy, Fuller said.
The location of Washington Dulles International Airport, which straddles Fairfax and Loudoun counties, is also a big reason for the shift, said Tony Howard, chief executive officer of the Loudoun County Chamber of Commerce.
“[The airport] makes it easier for anyone on any continent to set up shop in Northern Virginia,” he said.
But Northern Virginia’s share has shrunk recently, as it was hit harder by the economic downturn than the other two regions. Still, the economies in all three regions are growing — just at different rates.
David Robertson, executive director of the Metropolitan Washington Council of Governments, acknowledged an “east-west divide” in the region, saying that the eastern portion of the region, including parts of Maryland and the District of Columbia, simply does not have the same level or intensity of development as areas farther west, such as Fairfax and Loudoun.
However, he noted the revitalization of D.C.’s U Street corridor and Columbia Heights area.
“The demand for those condos and apartments in the Columbia Heights area is just gangbusters hot,” he said.
